ADB assisted projects to go under CAG scanner

ADB is currently funding the Odisha Integrated Irrigated Agriculture & Water Management Project with the cost being Rs 1,084.19 cr

The office of the Comptroller & Auditor General of India (CAG) has sought the status of implementation of projects being implemented in Odisha with assistance from the Asian Development Bank (ADB).

“Audit certification of all ADB assisted projects from 2013-14 are to be undertaken by the CAG as per mutually agreed upon Terms of Reference (ToR). In this context, it is requested that a complete list of ADB assisted projects being implemented in Odisha may be furnished for audit and issue of audit certificate by this office,” Deepak Raghu, deputy accountant general (Bhubaneswar) wrote to U N Behera, additional chief secretary (finance), Odisha government.

ADB is currently funding the Odisha Integrated Irrigated Agriculture & Water Management Project with the project cost pegged at Rs 1,084.19 crore.

ADB provides assistance in the form of loan or grant for the implementation of projects and programmes through the executing agencies identified by the Central and the state governments.

In order to facilitate the same, a loan agreement is executed between the Central agreement and ADB for each individual loan/grant while a project agreement is signed between ADB and the executing agency for each project/sub-project.

The disbursement of loan is governed by the ADB loan disbursement handbook which provides for various disbursement procedures- direct payment procedure, reimbursement procedure and commitment letter procedure.

The project agreement stipulated that the executing agency would maintain separate accounts for the project, have such accounts and related financial statements audited annually in accordance with appropriate auditing standards and furnish the same to the ADB.

The executing agencies for all sovereign loans are subject to audit by CAG.